The bill amends Section 44-5-11.8 of the General Laws concerning the classification of property for local tax purposes. It introduces new legal language regarding "Tax classification" and allows cities and towns to adopt tax classification plans following comprehensive revaluations or updates. The bill specifies that the designated classes of property are limited and outlines the conditions under which tax rates can be set for different classes, including limitations on how much the tax rate for one class can exceed another. Notably, it allows for specific exceptions for the cities of Providence, Glocester, and East Greenwich, and includes provisions for various towns to adopt their own tax classification plans with certain restrictions.

Additionally, the bill specifically enables the town of Middletown to create a tax classification plan that divides residential real estate into non-owner and owner-occupied properties, allowing for separate tax rates. It mandates that if Middletown chooses this route, it must establish rules and regulations governing the definitions and divisions of these property types. The act will take effect upon passage, providing municipalities with greater flexibility in managing their local tax structures.